Atlantic Data Services, Inc. Experiences Delays in Bookings.

QUINCY, Mass.--(BUSINESS WIRE)--Feb.16, 1999--Atlantic Data Services, Inc., (ADS) (NASDAQ:ADSC) announced today that, as a result of lower than anticipated bookings, it currently expects revenues in the probable range of approximately $11 million to $13 million and earnings (loss) per share of $(.04) to $.03 for its fourth fiscal quarter ending March 31, 1999.

"We have experienced noticeably lower bookings than anticipated and possible interim fall off in business with major banking institutions, which we believe are being caused in part by unrest in the financial services industry and the changing of customer purchasing patterns due to Year 2000 issues," said Robert Howe, Chief Executive Officer. "We previously reported both the loss of a major client and the resignation of our Executive Vice President and Director of Business Development. These factors, combined with changes in buying practices by major banking institutions and the lower bookings described above, will have an adverse impact on our financial results for the quarter ending March 31, 1999 and may impact future financial results."

"We are aggressively moving forward to restaff our business development group and replace lost revenue," continued Mr. Howe. "We believe the fundamentals of our business are strong, and that we are in a solid financial position to move forward."

About ADS - Founded in 1980, ADS, based in Quincy, MA provides information technology strategy consulting and systems integration services to customers exclusively in the financial services industry, primarily banks. ADS offers rapid, cost effective IT solutions to the business challenges faced by financial services companies through its in depth financial services experience, technological expertise and project management skills. The Company's service offerings are organized around five areas: IT Strategy Consulting, Consolidations and Conversions, Year 2000 Resolution, Application Outsourcing, and Electronic Commerce and Home Banking.

More information on ADS can be found on the World Wide Web at www.atlanticdataservices.com.

This press release contains forward-looking statements. Forward-looking statements and the contents in this press release are made pursuant to the safe-harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended. Such statements relating to, among other things, events, conditions and financial trends that may effect the Company's future plans of operations, business strategy, growth of operations and financial position, including, but not limited to, expectations as to future revenues and earnings per share, ability to restaff with qualified personnel, and replacement of lost revenue, are not guarantees of future performance and are necessarily subject to risks and uncertainties, some of which are significant in scope and nature that could cause actual results to differ materially from forward-looking statements and those results anticipated. Such risks and uncertainties include, but may not be limited to, variability in quarterly operating results, including the effects of customer purchasing patterns due to Year 2000 issues, dependence on the financial services industry, concentration of revenues and the Company's dependence on major customers, competition for, availability of and retention of professional staff, the impact of a major customer's recent decision not to extend its contracts with the Company beyond December 31, 1998, and other factors described in the Company's filings with the Securities and Exchange Commission, including those set forth under "Risk Factors" in the Company's Registration Statement on Form S-1, as amended, as filed with the Securities and Exchange Commission and declared effective on May 21, 1998.